Do Wall Street Analysts Like Automatic Data Processing Stock?

With a market cap of $105.7 billion, Automatic Data Processing, Inc. (ADP) is a global leader in HR and payroll solutions, leveraging more than 75 years of innovation and expertise to help businesses solve workforce challenges. With AI-driven insights and proven expertise, ADP supports over 1.1 million clients across 140+ countries with solutions spanning HR, talent, time management, benefits, compliance, and payroll.

Shares of the payroll and human resources company have lagged behind the broader market over the past 52 weeks. ADP stock has fallen 9.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.5%. Moreover, shares of the company have returned nearly 6% on a YTD basis, compared to SPX’s 12.6% rise.

Focusing more closely, shares of the Roseland, New Jersey-based company have underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 22.3% increase over the past 52 weeks. 

Automatic Data Processing shares rose 3.5% on Jul. 29 after the company reported better-than-expected Q4 2026 adjusted EPS of $2.64 and revenue of $5.47 billion. The company also delivered solid operating performance, with Employer Services revenue up 7% year-over-year to $3.70 billion and PEO Services revenue up 7% to $1.78 billion, and Employer Services’ margin expanded to 34.4%. 

Investor confidence was further supported by fiscal 2027 guidance calling for 9% - 11% adjusted EPS growth ($12.12 - $12.34), 5% - 6% revenue growth ($23 billion - $23.2 billion) and 70 - 90 basis points of EBIT-margin expansion from fiscal 2026’s 26.8%.

For the fiscal year ending in June 2027, analysts expect Automatic Data Processing’s adjusted EPS to grow 10.3% year-over-year to $12.26. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.

Among the 19 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, 13 “Holds,” one “Moderate Sell,” and one “Strong Sell.”

This configuration has remained unchanged over the past three months.

On Jul. 22, Cantor Fitzgerald raised ADP’s price target to $295 and maintained an “Overweight” rating.

The mean price target of $289.35 represents a 5.7% premium to ADP’s current price levels. The Street-high price target of $322 suggests a 17.6% potential upside.